Manufacturer and mobile sandwich retailer with three well established rounds calling on businesses on local industrial estates
Ref.AF069 Location HampshireAsking Price £ 95,000Confidential offered for sale | |
Asking price includes:
Projected turnover for the financial year 2006/7 £225,000
Gross margins of approximately 50%
Established client/customer base
Highly motivated and loyal staff
Excellent supplier partnerships
Well suited leasehold premises
Complete turnkey operation
Superb opportunity to grow
Training and handover
Plant and machinery
Enviable reputation
Four liveried vans
Security System
Goodwill | | Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA | Business profile: | Established for nine years and operating from its current site for the last five, this business is based in very well suited premises, on a small Business Park, ideally situated amongst several large industrial estates, just outside Southampton.
This business makes and supplies both hot and cold food, having built a well deserved reputation for quality products and service, providing high quality produce from the finest, fresh, locally produced ingredients at very competitive prices. This business has been built upon a very successful mobile concept – operating three routes daily, calling at pre-arranged times on over 100 companies located on the many industrial estates there are within just a few miles of the business. Such is the high level of demand for its food, the vans are required to top up with additional freshly made produce throughout each morning. The business has also established an additional revenue stream from supplying complete buffets to the corporate sector and has an excellent on-going relationship with a local training company providing up to fifty ‘trayed up’ lunches to its course delegates each day.
Its range includes hand made sandwiches, baguettes, pies, quiche and sausage rolls as well as a full range of snackfoods including crisps, confectionery etc and beverages including soups, coffee, tea and soft drinks. On the hot food side, as well as the obligatory bacon, cheese/tomato baguettes the business also offers a ‘portion’ range such as curry, chilli con carne, lasagne etc perfect for the microwave in the office or factory. Seasonal menu variations include salads and fruit salads during the summer. The business is perhaps most famous however, for its ever popular home made cake – made on the premises from individual ingredients and sold by the slice.
It is perhaps in its overriding commitment to quality where this business stands out from the competition, a philosophy that is demonstrated throughout the business – whether it be in the attitude of the whole team and their relationships with their customers, the reliability, consistency and excellence of the product and service. Eschewing the obscure chemicals, additives and preservatives common to so much of the 'prepared' and 'fast' food on the market today, this business uses only approved, reputable suppliers and the finest, fresh ingredients available. Sandwiches are well filled, portions good, prices are competitive and as far as possible everything is prepared daily.
This is a very well managed business that has grown consistently throughout its many years of operation. Very selective with the companies it calls upon – it has regular, cash based daily income from its three very well established rounds. With turnover projected to be in the region of £250,000 for the current financial year and gross margins of approximately 50% it represents an excellent opportunity for an existing manufacturer and ‘mobile’ operator to increase their presence in the marketplace, or alternatively a new entrant into the sector to acquire an excellent foothold n the Hampshire area. | Key strengths:
This business has an excellent reputation for quality products and high levels of customer service, providing high quality food made from the finest, fresh, locally produced ingredients at very competitive prices.
Operating three vans on specific routes each day, the business is very predictable with a consistent performance. Having been loyal to its customers in the past – most of which are based on industrial estates with no access to food outlets and have no catering facilities on site, customers are loyal in return. The business rewards this in turn by its reliability, turning up every day, on time, no matter the circumstances. Staff are very trustworthy, well motivated, very reliable and loyal.
To a point, this is a well managed business. It has chosen its customers carefully – having creamed off the best ones within the compass of their rounds. Standard production processes are in place to ensure consistency in the menu, the quality and volume, minimizing wastage whilst maintaining costs at a planned level. Cash is also managed with the greatest effectiveness – ‘recycled’ to pay staff and suppliers, minimising the time required to bank and avoiding excessive bank charges that can be such a drain on the profitability of small businesses.
Key opportunities:
There is an outstanding opportunity to build on the existing products, services and customer base of this company. With a strong demand for product combined with a capacity to increase turnover, a new owner contributing fresh ideas, motivation, enthusiasm and investment in advertising will have every advantage of building on an excellent platform.
Having established an excellent reputation within the local area in which this business operates, there is strong demand for this business amongst local employers. With the area in which this business is located saturated with Business Parks and industrial estates situated away from town centre facilities, there is significant scope for growth and expansion. There is certainly scope to add a fourth and even a fifth van – with additional calls upon its current rounds secured via leaflet drops for example.
Additional turnover is also available from the outsourced catering side of the business – either by advertising more aggressively its buffet lunch service to the companies it already calls upon or by catering for family occasions – weddings, funerals etc utilizing the ample downtime there exists in the kitchen after the day’s normal production has been completed.
This business would also benefit from a more concerted management approach. With additional resources available the current Owner feels a detailed analysis of its cost base would enable it to ensure its pricing is accurate and generating appropriate margins across the full product range. | | Premises
The business occupies very well suited leasehold premises incorporating 850 square feet of production with a mezzanine floor given over to office accommodation. There is one year remaining on the lease, though it is understood there will be little difficulty in renewing it. Rent is £450 per month. Rates are £958 per annum including a 50% Small Business discount.
The business is located in a small industrial unit on a Business Park, ideally situated for easy access to the many other industrial estates that make up its rounds.
Equipment:
The business has all the plant and equipment expected of an organization operating in this sector including an Oven, Griddle, Robot Coupe industrial food processor, a labeling machine, slicer and sandwich sealer.
The business has always striven to purchase the best quality machinery within its budget. All machinery is working well and has been consistently maintained.
The business has four vans in all – liveried and specially designed to open up at the back and side for ease of serving customers.
Business Hours
The business currently operates between 5.00am and 2.00pm, during weekdays (closing at 1.00 pm on Fridays). One member of staff works approximately 6 hours on a Sunday to prepare for the Monday trade. | Marketing and advertising:
Having been established for nine years and with firmly established rounds, this business does little by way of advertising, enjoying high levels of repeat business and the most effective form of marketing, word of mouth recommendation, testimony to the excellent reputation this business has for its reliability, quality food and drink and customer service.
The business would certainly benefit from the development and execution of a strategic marketing plan addressing its corporate identity and communications such as a website and corporate brochure, particularly to increase its activity in the corporate catering sector, parties and functions etc. | | | Financial profile: | The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business has performed consistently throughout its nine years of operation, is financially stable and enjoys high gross margins. Turnover for the financial year ending March 2006 was £225,000, generating gross margins of approximately 50%. | Employees:
The Owner off the business working in a Sales and management capacity together with her Husband who runs the Operations side of the business are responsible for the day-to-day management of the business supported by seven others including three involved in food preparation, three van drivers and a washer up. | Support and training:
Full training, handover and familiarisation will be provided to ensure a smooth transfer of the business to new Owners. | Reason for sale:
The current Owner feels that she has taken the development of the business as far as she can and that the time is right to pass it on to new Owners to build on the excellent foundations that have already been laid. | | Turner Butler Disclosure Statement: This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business') The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business. For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions. Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler. You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler. Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision. Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information. This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts |
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